The Government Service Insurance System (GSIS) has invested in Alternergy Holdings Corp., a publicly listed pioneer in renewable power known for its profitability and commitment to clean energy.
In a report by the Manila Bulletin, GSIS said that it injected a total of Php 1.45 billion into Alternergy’s Perpetual Preferred Shares 2 Series A through a private placement.
Acting as the foundation investor for Alternergy, GSIS aims to support the energy company in advancing its wind, solar, and hydropower projects.
Wick Veloso, President, and General Manager of GSIS stated the pension fund’s commitment to building a robust investment portfolio focused on infrastructure projects powered by renewable energy (RE). Veloso emphasized Alternergy’s appeal to institutional investors, citing its strategic collaborations and significant contributions to the Philippines’ energy transition.
Veloso explained that the investment aligns with the country’s National Renewable Energy Program and serves as a foundation for stable returns.
Vicente Perez Jr., Chairman of Alternergy, highlighted that GSIS’s support would expedite Alternergy’s rollout of its Triple Play portfolio, encompassing wind, solar, and run-of-river projects.
Gerry Magbanua, President of Alternergy, discussed GSIS’s allotment in relation to the initial public offering (IPO) conducted in March, emphasizing that the equity infusion from GSIS would significantly boost Alternergy’s equity base as part of its medium-term capital-raising program.
Magbanua noted a landmark offering arranged by the Investment & Capital Corp. of the Philippines (ICCP), Alternergy’s long-time financial advisor. ICCP serves as the Financial Adviser and Sole Placement Manager for the private placement coordinated with GSIS.
Valentino S. Bagatsing, Chairman and Chief of ICCP, expressed pride in continuing to support Alternergy as an emerging player in renewable energy, thanking GSIS for its ongoing support.
To secure capital for Alternergy’s project pipeline, the energy corporation engaged in back-to-back corporate finance activities, including stockholders’ approval for the reclassification of preferred shares and reaching out to Bank of the Philippine Islands (BPI), Rizal Commercial Banking Corp. (RCBC), and Security Bank (SB) to raise Php 12 billion for the project finance structure.
These investments are crucial for the construction of the Tanay and Alabat Wind Power Projects, winners under the Green Energy Auction 2 from the Department of Energy (DOE).